Property & Mortgages
When your fixed-rate deal ends, you'll revert to your lender's standard variable rate — typically much more expensive. Remortgaging at the right time can save hundreds of pounds a month.
Remortgaging means switching your mortgage to a new deal — either with your existing lender (a product transfer) or with a different lender entirely. You are not moving home; you are changing the terms of your mortgage on the property you already own.
The most common reason is that a fixed-rate deal is ending. Most mortgages are fixed for two or five years. When they expire, the lender automatically moves you onto their Standard Variable Rate (SVR), which is almost always significantly higher — often 2–3 percentage points above what you were paying.
The cost of doing nothing
On a £250,000 mortgage, moving from a 4.5% fixed rate to a 7.5% SVR adds roughly £375/month. Over the six months it might take to arrange a new deal after the fact, that's £2,250 wasted — remortgaging six months early is almost always worth it.
Start looking six months before your current deal ends. Most lenders let you lock in a new rate up to six months in advance, at no cost, with no obligation. If rates fall before your deal starts, you can often switch to a better rate with the same lender.
| Timeline | Action |
|---|---|
| 6 months before deal ends | Start comparing rates. Apply for a new deal to lock in a rate. |
| 3–4 months before | Confirm offer with lender. Instruct a solicitor if switching lenders. |
| Deal expiry date | New rate begins. No gap in mortgage payments. |
| After deal expires | SVR kicks in. Every month costs more than it should. |
Set a calendar reminder at least six months before your deal ends. Your current lender should write to you 3–6 months before your deal expires — but don't rely on them to do so, and don't assume they're offering you the best rate.
When your deal ends, you have two routes:
Product transfer
Switching to a new deal with the same lender. Faster, usually no legal fees, no new affordability check (often), and no valuation needed. The downside: you only see the rates your current lender offers, which may not be the best available.
Full remortgage
Switching to a new lender entirely. Access to the whole market — often better rates. Requires a new application, affordability assessment, valuation, and legal work. Typically takes 4–8 weeks but can save significantly more over the mortgage term.
Always check both options before deciding. Even if switching lenders saves only £50/month, that's £600/year — more than enough to cover legal fees on a 2-year fix.
Your rate is locked for a set period, typically 2 or 5 years. Payments are predictable regardless of what the Bank of England base rate does. Most popular with borrowers who want certainty, especially those on tight budgets.
The downside: if rates fall significantly, you're locked in at a higher rate and may face early repayment charges (ERCs) to leave. 5-year fixes generally offer a lower rate than 2-year fixes to compensate for the longer commitment.
Follows the Bank of England base rate plus a set margin (e.g. base rate + 1%). If the base rate falls, so does your rate — and your payment. If it rises, so does your payment. Trackers often have lower or no ERCs, giving more flexibility.
Trackers work well when rates are falling or expected to fall, or if you expect to sell or pay off the mortgage before the deal ends.
Loan-to-value (LTV) is your outstanding mortgage balance divided by your property's current value, expressed as a percentage. A £180,000 mortgage on a £300,000 property = 60% LTV.
Lenders price their best rates at the lowest LTV tiers. The key thresholds are typically 60%, 65%, 70%, 75%, 80%, 85%, and 90% LTV. Dropping below a threshold — through a combination of repayments and house price growth — can unlock meaningfully better rates.
Example: LTV improvement at remortgage
You bought at £300,000 with a £240,000 mortgage (80% LTV). Three years later, your balance is £225,000 and the property has risen to £330,000. Your LTV is now 68%. This might put you in a better rate tier than when you originally bought.
Before remortgaging, get an up-to-date valuation or estate agent estimate. A higher property value reduces your LTV and can unlock a better rate band.
A lower headline rate doesn't always mean a cheaper deal overall. Add up all the costs before comparing:
| Cost | Typical range | Notes |
|---|---|---|
| Arrangement fee | £0–£2,000 | Can be added to mortgage, but adds interest |
| Valuation fee | £0–£500 | Often free or subsidised by lender |
| Legal/conveyancing fees | £300–£800 | Often free with lender cashback or incentive |
| Early repayment charge (ERC) | 1–5% of balance | Only if leaving current deal early |
| Broker fee | £0–£500 | Many whole-market brokers are free to borrowers |
When comparing deals, use the total cost over the deal period rather than just the monthly payment. A deal with a lower rate but a £999 arrangement fee may cost more over 2 years than one with a slightly higher rate and no fee.
If you leave your current deal before it ends, you will almost certainly face an early repayment charge. ERCs are typically 1–5% of the outstanding balance and decrease as you approach the end of the deal (e.g. 3% in year 1, 2% in year 2, 1% in year 3 of a 3-year fix). On a £200,000 mortgage, a 3% ERC is £6,000 — usually too large to justify switching early.
Check your mortgage terms carefully. Some deals allow overpayments of up to 10% per year without triggering ERCs. A few specialist trackers and offset mortgages have no ERCs at all.
Check your current lender's retention deals first
Log in to your lender's online portal or call their retention team. These deals are often competitive and come with no legal fees.
Use a whole-of-market broker
Brokers who access deals from across the market often find rates that aren't available directly. Many are fee-free, earning commission from lenders. Look for one who is FCA-authorised.
Compare total cost, not just rate
Calculate total repayments plus all fees over the deal period. Two deals with the same rate but different fees can cost several hundred pounds differently over 2 years.
Apply early and keep your options open
Lock in a rate up to 6 months in advance. If rates fall before completion, most lenders will let you switch to a lower rate offer with them. The offer is not binding until completion.
Some borrowers find it harder to remortgage: self-employed income, reduced income since the original mortgage, or a property value that has fallen. A few options:
Remortgaging checklist